something that's so out of bounds of what other departments have done. >> supervisor kim. >> i know i was the initial one who suggested the 801. i think we should think about putting it into the code so it's clear to everyone. i think this is a case where we want to do what the right thing is. if other officials are filling occupant form 801 in similar circumstances then perhaps we should just codify it. i think that's what opened up that discussisurprised that we are allowed to set up a third-party /aeu /koupblt. i think it's

just problematic that any entity can do /tphaet donate. it seems to be a big loophole that i didn't realize existed. this is not anything on what the da done. this is just my overall feeling about the way state law operates. i think it's problematic and i hope with can have a bigger discussion about this. i will be supporting this today. it is legal under state law so i won't disagree with that. >> just a last comment. when i first got on the board of supervisors, it was during the budget committee /-fp we had a handful of items that were retro active accept and expends and we took exception to those.

that's why i brought it up right now. we have a trend that's happening now. proliferation of retro active accept and expends that i think we should tighten up moving forward. this is one of 'em. this is one that pains me more than others. i think it's important to point out. >> any further discussion? let's take a vote. >> item 15 supervisor chiu, i; cohen i, farrell i, kim i mar i, tang i, wiener i, yee i, avalos no, breed i, campos i. ten i's and one no.

>> item 16. chew i, cohen i, farrell i, kim i, mar i, tang i, wiener i, yee i, avalos i, breed i, campos i. there are 11 i's. >> i'm 17. >> fiscally feasible under administrative code chapter 29 [inaudible] and the port commission. >> supervisor kim.

>> thank you. this was introduced in collaboration [inaudible] see walk 337 as many of you are familiar is better known as a parking lot which is leased to the giants and currently they are in negotiations with the committee than other parts of san francisco. and also, as been briefed by the newspapers will include [inaudible] san francisco and will be a site for local manufacturing jobs here in the city. this did

come out from the budget committee with positive recommendation. i'm looking forward to ongoing discussions with the giants about this. i know that we are certainly looking forward to having a conversation about kind of the different triggers about when i know we will [inaudible] open space will come forward and the parkings and some of the the infrastructure we look forward to having that discussion, but i ask for your support today. >> can we do this item same house, same call. without objection, this resolution is adopted. >> item 18 is [inaudible] commission for an eight year term with a /pheupbl mum annual guarantee -- ten million.

>> supervisor avalos. >> this is regarding the clear channel contract at the airport. this is a break from how we have traditionally done contracts at the airport for leases and contracts. and generally we've had a [inaudible] guarantee plus a gross percentage of gross revenue. it's a standard that we have at all airports for advertising contracts throughout the country. we found out last week that that wasn't the case. i do feel that we need to really make sure that we are not leaving money on the table. i believe

that the members that we've seen in terms of passengers at the airport have ways of giving us a sense that we've had really good years when our economy hasn't been that strong. now we're seeing the economy grow. i expect that our airport passenger ridership will increase as we move forward. last night we heard prelim figures for the current quarter showing that ridership is up even higher and if we were to extrapolate what that looks like going forward and it it would be an even higher yield. it brings question that 10 million dollars is sufficient and if the airport

is leaving money on the /taubl. i think it brings analysis to make sure we have getting the best numbers based on the information coming through and i would ask that it possible to continue this item so we could review the information that's come forward to see whether we are actually looking at mag that is lower than what we could expect to get if we could apply gross [inaudible] revenues. i'd like to ask a question of you, if you could oblige. so you seen some data presented to you earlier today. could you talk about that be data, about how successful that contract would be [inaudible].

>> mr. president and members of the board supervisor avalos. we have not had time to verify or document what is being represented in that memorandum. we would certainly be happy to look at it if the board of supervisors wants us to do so. >> i would like to think that if we're seeing in trend in ridership, i think it would make sense to analyze it. do you think a week's time would be enough if we were to continue for a week. >> yes. i think that would be sufficient. >> /kuld could you tell us what you've seen so far in terms of the figures you've seen so far? >> the number that i recall -- they were indicating that there

would be about a 10.6 million dollar payment. but again, we have not verified that and we don't know if that's correct. >> and then the assumptions that th number's based on -- do you think that's adequate information you've had >> just want to be clear about the data set. is that something you will verify with the airport to see that it's correct information? >> we would work with both the airport, as well as the provide of the information. >> so i'd like to request that

we continue this for a week to make sure we get that information. i do not think it's critical that we delay a week. i don't think that's a critical am of time, especially if it's giving us guidance. >> is there a second to that motion? seconded by supervisor kim. >> that's may 21. >> supervisor farrell >> this data set we're talking about -- what period does this cover? do we know? >> the document says 2012. i want to emphasize, i cannot back up this data. i just received it. we have not done any verification on it so i don't know what the assumptions

are or what the data is to back it up. >> do we know where the source of the data is? >> yes. the source is [inaudible]. >> okay. do you have the timeframe of that data though? >> it says on the document 2012. that's all it says. >> okay. well, thank you very much. i would luke like to thank the members of the department who did a tremendous amount of work on this item and we went back and forth in budget committee on this issue. there are a few questions that came out of this. i think that supervisor avalos discussing now was [inaudible] in the contract or also having

combination of a mag and gross revenues, whichever's higher. i've had [inaudible] i ask our budget analyst to do a lot of work to look at what our other airports are doing and especially [inaudible] in san francisco and it's absolutely transparticipant that this is absolutely out of the ordinary to have this [inaudible] guarantee in there. but i do believe that [inaudible] o this is what's going to extract the highest revenue for san francisco. we do get 15 percent of this revenue into our general fund, but in

speaking with mr. martin and his views about future traffic patterns. he made the best decision possible to issue just a mag contract and and rfp. as well, i think one of the things -- i know san francisco is beautiful is here today, but from my perspective we're reducing the number of add /sreration /*rtizing locations to 200, when comparable airports across the country have over 1000 advertising locations. in this instance, they are protesting and filed a protest on basically claiming that they didn't know that they should have bid more for the

minimal annual guarantee, which i think is a bit of a joke. if you're bidding on a financial contract i /aoeud imagine you wanna put your best foot forward and put the maximum amount you can. you can't extrapolate historical data and talk about the future here. the future is -- we were an ticipating losing market share to san jose and oakland. what he's doing here in this contract is appropriate. i will not be supporting the motion and continue. i don't think that reading data from

the competitor that is ticked off because they lost the bid makes sense. >> john martin airport director. we're nearing or maximum capacity. we're handling 44 million passengers per year. we expect growth in san francisco and san jose. my market share is at an all time high. it's gone from 54 percent to 72 percent. it is going tock. shsan jose

is showing an almost 11 percent growth in seat count, i'm showing a zero percent growth in seat count. we'll get 80 million dollars over eight years versus the 72 /ph-l million clear channel is paying 70 percent today. most of our leases are 8 to 12 per acceptable. very unusual. but every lease is unique. the food and beverage leases -- we didn't require the food and beverage operators to even /sufbl submit which is very low. we did that purposefully

to try and get local rest /raupblt tours in so they wouldn't be intimidated by hi mag and that's worked well for us. we double or food and beverage sales per passenger, as a result of our food and program we've had for the past eight years. we know what we're doing. unique circumstances that require unique approaches. i lowered the minimum rent because we /tao*er we're afraid of not getting any bidders. having a bank is important for our employees amend our concessions. >> we've been provided with

what is some new information to us today, which provides some data, which i assume you have some knowledge of, although i do understand the information was provided by the opposing bid. could you comment on this? what are your thoughts on the new information?

>> there's a reward to clear channel, but i think we probably would have seen bids of 6, 7, 8 million dollars at most. this is i think where mr. /roz and i disagree. i think there's no way we would have gotten that ten million dollar bid if there was a [inaudible]. >> if from your perspective we have seen significant growth, but given --

>> our high market share numbers won't be sustained. we have a lot of people driving from san jose and oakland. i expect they will get those daytime flights in the next year and we'll see a shift from the bay area traffic that is more balanced than what it is today. >> i do see this as a difference on what's in the best interest of the city /-fp i really have /praoerpbted that mr. martin has shared as much information as they can. i know that you know the mar /k*et market better than we do

and your explanation of oak land and san jose growing over the next few years. i'm trying to look through it right now to understand it, but i'm wondering if you could touch on one other issue as, um, they want to reduce clutter and the in your /tpaeuls add remembertizing. i know this contract reduces the number of 286 to 179. it's a significant /kapblt those digital advertising locations i wanted to give you an opportunity to respond. >> our rfp document made clear that we would allow digital

advertising so all of the bidders assumed some additional value i >> i want to thank all the parties who have weighed in on this in the last few days. there's been a lot of activity here in city hall. this is not an easy decision for me because you're talking about a very

difference of opinion between two individuals for which i have a lot of respect. i'll be honest with you, it's really hard to get invested in something like this when i don't necessarily think there is -- when you have two companies that are vying for a contract, it's really hard sometimes to tell them apart and i probably would feel the same way if jc had been in the other position. they're trying to win this contract and my experience is that when you try to /weupbl win a contract and you don't get it, you make the arguments, but it doesn't mean that there is a good or bad player here. i think you have two companies that are trying

to win this bid. the question for me isn't who's better, but what's in the best interest of the city and i don't know what the answer is. i want to give some deference -- i'm not sure what the answer to the question of what the best deal is. my inclination would be not to support this, which is where i i am right now because i do have questions. i could be convinced that this is the best deal and i think there are strong arguments on either side as to that point. i think that mr. rose has a great deal of information that he has given us about where this fits in the

largest scheme of things, not only -- one thing that i think is unfortunate about some of the things that we have seen with respect to this case and i say as someone who is inclined not to support this is the way in which people have talked about this, on the side against this deal. there's a letter came in that i think references things that are really not relevant here, including how we

need to have competitive bidding because if you don't there might be favoritism, fraud, all kind of things. i don't know that any and all only either side of this case is against competitive bidding and i certainly have been a strong champion of competitive bidding. i think we can do this without questioning the motives of people and i have a great deal of respect for mr. martin and understand where he's coming from. and so i think it's unfortunate with that kind of language is put out there because i don't think that that's really where we are with this. i also believe as somebody who's gone back and forth in thinking about this, that i'm not sure if continuing this item really gets us ywre.

data for a shorter period of time may or may not shed light on what actually will end up getting paid by clear channel here. you may extrapolate that that leads you to this amount, bulge there may be fluctuations within a given year, so i'm not sure we gain anything by a /kopblt continuance and i don't have any reason to doubt the voracity of the numbers, but i think there's a legitimate difference of opinion here, but i say vote yes or no. enough has been

discussed and clear channel or jc need to know where we are. >> supervisor wean /erp. winer. wiener. >> so when this first came up, i struggled with this. and initially i had a concern about other contractual relationships with clear channel around or bus stations and news racks and i've had numerous frustrations with those contracts. we have way too much clear channel stuff on our sidewalks so i had concerns about clear channel as a i voted against